Deadline on social security program

JAKARTA (JP): After clamping down hard on employers over minimum wage regulations, Minister of Manpower Abdul Latief has another thing in store for them: compliance with the regulation guaranteeing social security for their workers.

Latief announced yesterday that he is giving private company employers three months to comply with the 1992 law requiring every company to enlist their workers in the social security program.

"In October, I will make unannounced visits to selected companies nationwide to make sure that they comply with the law," he said after meeting President Soeharto at Merdeka Palace yesterday.

The President is fully behind the campaign, he added.

Private companies have no reason not to comply, especially since they have had a three-year "grace period", he said.

"They now have three months, from July until September, to have their workers administratively insured," he said, adding that bankruptcy will be the only exemption.

Private companies are required to provide their workers with social security cards in order to facilitate manpower data collecting and sampling.

Under Law No. 3/1992 on Workers Social Security Program, employers face a maximum penalty of Rp 50 million or six months imprisonment for breaking or ignoring the law.

The premium each company pays towards insuring their workers went up when PT Astek, the government-run workers' insurance company, changed its scheme from Astek to Jamsostek, which is a more comprehensive insurance program. The higher premium has been cited as the reason for many companies' reluctance to pay.

The minister noted that Indonesia has about 40 million workers in the private sector, but so far only six million have registered for the Jamsostek program.

He blamed the small number of workers registered in the program on companies concealing the real number of people employed. We've noticed that several companies register only half of their workers in order to pay less premiums to PT Astek."

He also noted that only 50,000 out 148,000 registered private companies in Indonesia have joined the Jamsostek program.

The government initially hoped that 12 million workers would be enlisted into the social security program by the end of the sixth long term development program (Repelita VI).

Latief said his office is cooperating with the National Statistical Bureau to collect and evaluate data.

He said his next move would be to ensure the inclusion of part-time workers in the social security program, since the law also covers them.

"We're now working on ensuring coverage for permanent workers," he said, adding that it would require some time to achieve the target.

Latief yesterday also reported to President Soeharto on his recent participation in the International Labor Organization meeting.

He pointed out that Indonesia and other developing countries succeeded in preventing developed countries from linking labor issues to international trade relations. (imn)